Diwali Samvat 2082 Stock Pick: Sai Life Sciences Ltd – MNCL’s Expert Choice

SAI Life Sciences is an innovator focused CRDMO in small molecule (NCE) space. The company is a fully integrated CRDMO player with presence in both discovery as well as development and commercial manufacturing. CRO and CDMO account for 37% and 63% of the revenue, with about 30 molecules in the commercial manufacturing stage. SAI has four manufacturing facilities two in India and one each in the UK (Manchester) and the US (Boston), serving 18 out of the 25 largest global pharmaceutical companies. The company has a healthy pipeline with 6 molecules (three potential blockbusters) in Phase III/Registration stage and over 40 programs advanced to IND or various clinical trial stages.

Source: ACE Equity, MNCL Research

Price Performance

Source: ACE Equity, MNCL Research

Shareholding Pattern

Source: ACE Equity, MNCL Research

Bio-secure Act - Tailwind for the Indian CRDMO space:

With low cost and rising technical know-how, Indian CRDMOs has witnessed increasing demand from the global Pharma companies. Indian CRDMO has grown at a CAGR of 12.6% over the past five years. Efforts to de-risk the supply chain (post Covid) by the global pharma companies and the proposed Bio-secure Act in US, will further act as a tailwind for the Indian CRDMO sector. Indian CRDMO industry, largely dominated by small molecules, is expected to grow at CAGR of 14% over FY23-28.

Strong R&D capabilities:

SAI Life follows a differentiated global delivery model – with discovery and development laboratories near key innovation hubs in the US and UK, and large-scale R&D and manufacturing facilities in India. Out of the total employee strength of ~3400 in FY25, 2605 are scientists. The company has further on-boarded 250 scientists and technical professionals in Q1FY26. With increasing focus on Biologics, it launched state-of-the-art Biologics facility at its Hyderabad campus and has started building a new Process R&D block, which will nearly double its Process R&D capabilities. It is also adding clinical-scale peptide capabilities, as well as early-phase formulation capabilities.

Strengthening capabilities in the new-age modalities in the fast-growing CRDMO for NBEs:

After creating a niche in the innovator focussed CRDMO for the small molecules (NCEs or New Chemical Entities), SAI is focussing now on the fast-emerging Biologics space. NBEs or New Biological Entities are large complex biological entities derived from living organisms. Biologics have revolutionized treatment for many serious ailments like Autoimmune diseases, Cancer (Targeted therapies like ADC or Anti-Body Drug Conjugates that attack cancer cells without harming healthy ones) Diabetes, Rare genetic disorders (Gene and enzyme replacement therapies), Infectious diseases etc. CRDMO for Biologics and Bio-similar molecules are expected to grow at a CAGR of 17.8% over the next five years, against 13.7% CAGR of growth in the small molecule CRDMO over the same period (Source: Frost & Sullivan Report). The company is strengthening its capabilities in the new modalities like ADCs, Oligonucleotides, mRNA Therapeutics and Peptides. New modalities have already started contributing to the revenue and it accounted for 7% of the revenue in FY25.

Outlook & Valuation:

SAI Life is one of the very few fully integrated innovator focused CRDMO player, with a niche in the small molecule. The company has strong R&D capabilities and is strengthening its capabilities in the high growth Biologics CRDMO. Our 1 Yr forward DCF based Target price for SAI Life stands at Rs1055, with a potential upside of 22% from the current levels.

Exhibit 1: Key Financials (Consolidated)

Exhibit 2: Key Indicators

Source: Company Sai Life Sciences Ltd, MNCL Research

STOCK PICKS FOR SAMVAT 2082

*Closing Price as on 10-10-2025

Make this Diwali truly rewarding –  
Open your MNCL Demat Account today!